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Although more scholars have studied the economic consequences of ESG, no conclusive results have been reached yet. In addition, there is a lack of research on the relationship between corporate ESG performance and surplus persistence. This paper adopts the ordinary least squares (OLS) method to analyze the impact of corporate ESG performance on corporate surplus persistence based on stakeholder theory and principal-agent theory using companies listed in Shanghai and Shenzhen A-shares from 2010 to 2022 as research objects. It was found that there is a significant positive correlation between ESG performance and both the social (S) and governance (G) dimensions, as well as surplus sustainability; conversely, the environmental (E) dimension is significantly negatively correlated with surplus sustainability in the short term, but further analysis reveals that it can enhance corporate surplus sustainability in the long run. Institutional investor shareholding and debt financing costs mediate the relationship between corporate ESG performance and both the S and G dimensions, influencing surplus persistence. Further analysis shows that the positive correlation between a firm’s ESG performance and its governance (G) dimension related to surplus persistence is more significant in the eastern region.
Xu et al. (Mon,) studied this question.